The IRS could not assert Code Sec. 6721 or Code Sec. 6722 penalties against an employer for failure to file and furnish Forms W-2c, Corrected Wage and Tax Statement, at the conclusion of an audit. However, the IRS could assert the penalties if the employer failed to file and furnish the Forms W-2c by the due date.
Under the regulations, the employer would have until January 31 of the year following the year in which the audit concluded to file corrected statements. The due date was previously the last day of February for paper and March 31 for electronic filing of Forms W-2. These dates were changed by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) (P.L. 114-113). (IRS Chief Counsel Advice 201629008, IRS Chief Counsel Advice 201629008.)
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